I have this impression that it’s seen as a riskier decision to buy a home, knowing you won’t live in it long enough to pay off the mortgage and then sell it when you’re ready to move away, when compared to renting a home. Am I off base on that, and if so, why is this the case?
In: Economics
Apart from fees eating up the gains, which really just comes down to a cost comparison with renting.
As with any investment you don’t know what the short term price development will be. This is why you are discouraged from putting money stocks or bonds if you know you are going to need it soon. Because the market might take a dip.
Same with housing. In the long term its pretty safe to assume that you will see returns from owning a home. In the short term, nobody knows for sure.
(Nobody knows for the long term either, it’s just an expression)
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